The paper sought to investigate the effect government expenditure on economic growth in Sub-Saharan Africa using a panel data for 35 Sub-Saharan African countries for the period 2006-2018. The paper adopted dynamic panel data and estimates were achieved by using two-step system GMM while taking into account the problem of instrument proliferation. The paper provided evidence that education and health expenditure are key determinants of income growth for SSA. The impact of education spending on cross-country income variation is more effective in low income SSA countries than the middle income SSA countries. However, military expenditure on output growth is more effective in improving income level of middle income SSA countries than low income SSA countries. SSA countries should allocate more funding towards education sector and should also avail compulsory and free primary and secondary education. SSA should carry out health reforms which improve primary health and universal health insurance coverage.
In this article, the authors analyze the efficiency of public spending among Sub-Saharan African countries using a panel data for 23 Sub-Saharan Africa countries covering the period 2006-2018. This paper employs two-stage bootstrap output-oriented DEA approach. In addition, this study analyses the sources of distortions in public spending. Results show that the average biascorrected inefficiency score was 48 percent between 2006 and 2018 while the uncorrected inefficiency was 32.3percent. Institutional quality and domestic saving significantly influence the efficiency of public spending. Hence, there is need for Sub-Saharan African governments to observe fiscal discipline through strengthening of monitoring unit of government expenditure.
Economic growth elasticity of employment refers to the change in economic growth that is associated with a 1% change in employment. The focus of this study is to establish how employment creation translates to economic growth in Kenya using data from 1997 to 2019. In addition, the study determines the directional relationship of growth employment and growth using Error Correction model (EC). This model is used to capture both the short-run and long-run relationship among variables. Economic growth and employment are measured using rate of per capita GDP and employment ratio respectively. The key findings of this study suggest that, a percentage change in employment is associated with growth of economy in the short-run and a decline of economic growth in the long-run. During the review period, increase in percentage of those employed did not lead to increase in Gross Domestic Product (GDP) per capita in the end.
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